Larsen and Toubro plans to sell a third of its holding in Mahindra Satyam on Friday or early next week. L&T holds a 6.9 per cent stake in the company. With Satyam shares quoting at Rs 117.45 on the BSE at close on Thursday, L&T’s total investment of about Rs 600 crore at Rs 82 a share is now worth over Rs 850 crore.
The news of L&T’s interest in offloading a part of its stake in the IT services company has been doing the rounds since Thursday morning. While the company’s official line was that it would not “like to comment on speculation”, insiders confirmed that the decision to sell a portion of its holding has been initiated.
The move could possibly have a link to L&T interest in acquiring a stake in Mumbai-based Patni Computer. The news of this alliance has been doing the rounds for over a month. Last month, L&T’s Chief Financial Officer, Mr Y. M. Deosthalee, said that the company would incur capital gains tax if the shares were sold before December and that the shares bought in the first tranche were at a higher price and it would incur a loss as well by selling them.
L&T had 12.04 per cent holding in Mahindra Satyam (erstwhile Satyam Computer Services Ltd), which subsequently got diluted with fresh issue of shares to the Mahindras, which took over the IT services company. In December 2008, L&T Capital, a subsidiary of L&T, picked up a 3.95 per cent stake in Satyam. In January 2009, L&T purchased 3.9 crore Satyam shares on the NSE at an average price of Rs 34.52 and 1.18 crore shares at an average price of Rs 35.07 on the BSE.
One of the conditions imposed on the bidders for Satyam in April was that they should not sell their prior holdings (of Satyam) for six months since confidential financial details were made available to them. Hence, L&T was restrained from offloading the shares till October 14.
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| Company Name | CMP |
|---|---|
| Larsen & Toubro | 3630.60 |
| Rail Vikas Nigam | 433.00 |
| NCC | 287.25 |
| KEC International | 1232.00 |
| Kalpataru Projects | 1275.40 |
| View more.. | |
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